Surrender Values, Expense Ratios and Real Estate

Update: 2024-10-03

Description

In this episode, Monika discusses recent changes in life insurance policies that have resulted in improved surrender values for policyholders starting October 1, 2024. Previously, policyholders faced harsh penalties for exiting mid-term, but now they can recover more than 70% of their premiums even after the first payment, and nearly 90% after five payments. This is a significant step towards better treatment of investors, though the insurance industry may still try to navigate around these regulations.

Next, Monika clarifies that an SWP, or Systematic Withdrawal Plan, is not a standalone product but a method for withdrawing funds from a mutual fund. She emphasizes the importance of understanding how withdrawals can impact overall returns.

Lastly, Monika addresses listener queries, including Upasana's concerns about rising expense ratios in her mutual fund, Saurabh's questions about portfolio efficiency concerning capital gains taxes, and Visvesara's search for alternative investments after selling a property. She provides insights and advice to help listeners make informed decisions.

Chapters:

(00:32 - 00:29 ) Life Insurance Changes: A Long-Awaited Victory

(00:30 - 05:41 ) Understanding Surrender Value

(05:42 - 07:32 ) Decoding Systematic Withdrawal Plans (SWP)

(07:42 - 12:16 ) Expense Ratios: What You Need to Know

(12:19 - 14:25 ) Evaluating Investment Portfolios: Small Cases and Active Management

(14:28 - 17:23 ) Exploring Real Estate Alternatives

https://www.amfiindia.com/investor-corner/knowledge-center/Expense-Ratio.html

https://www.valueresearchonline.com/funds/selector/category/142/hybrid-dynamic-asset-allocation/?end-type=1&exclude=suspended-plans&plan-type=direct&tab=snapshot

https://www.valueresearchonline.com/my-investments/

If you have financial questions that you’d like answers for, please email us at ⁠mailme@monikahalan.com⁠

Monika’s book on basic money management